Australia's Orica to buy US-based Cyanco for $640 mln (updated)

ORICA

20/02/2024 22:10

(Adds details on acquisition, CEO quote)
       Feb 21 (Reuters) - Australia's mining chemicals maker
Orica  ORI.AX  said on Wednesday it will acquire the entire
stake of U.S.-based sodium cyanide manufacturer Cyanco
Intermediate 4 Corp for $640 million.
    Orica will fund the acquisition via an underwritten
institutional placement worth A$400 million ($261.88 million),
along with its existing cash and debt facilities, it said.
    The company said it will also launch a share purchase plan
of A$65 million for financing the Cyanco deal. 
    Cyanco supplies sodium cyanide, a specialised chemical
required for gold processing, primarily to gold mining
industries in the U.S., Canada, Mexico, Latin America, and
Africa. 
        "The acquisition will more than double Orica's existing
sodium cyanide production capacity and provide us with the
ability to cater to the highly attractive US and Canadian gold
mining industries," Orica's CEO said.
  
        The acquisition is expected to be completed by the end
of fiscal 2024, the Australian firm said.  
  

($1 = 1.5274 Australian dollars)

 (Reporting by Poonam Behura; Editing by Shailesh Kuber and
Chris Reese)
 ((Poonam.Behura@thomsonreuters.com;))